Adidas achieves strong start to 2025 with double-digit growth across all markets

Revenues rose nearly €700 million year-over-year to €6.15 billion, supported by robust sell-through rates, an expanding wholesale presence, and renewed demand across adidas' global direct-to-consumer operations. Operating profit surged by 82% to €610 million, pushing the operating margin to 9.9%, up 3.8 percentage points compared to Q1 2024. Net income from continuing operations more than doubled to €436 million.

"Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand," said adidas CEO Bjørn Gulden. "The €610 million operating profit and 9.9% margin prove the great potential of our company."

Footwear drives growth across segments

Footwear was once again the main growth engine, with a 17% increase, led by high-performing franchises in Originals, Running, Sportswear, Basketball, and Outdoor. Lifestyle demand remained strong, driven by renewed consumer interest in silhouettes like Samba, SL72, Campus, and retro styles including Superstar and Adiracer. Meanwhile, performance running saw continued acceleration, including the successful launch of the Adizero Adios Pro 4 and Evo SL.

Collaborations with high-profile names such as Bad Bunny, Pharrell Williams, Bape, and Sporty & Rich, as well as activations at Paris Fashion Week and global sporting events, further amplified adidas’ visibility and appeal in key consumer segments.

All markets and channels contribute to momentum

Sales increased across all major markets: Latin America (+26%), Emerging Markets (+23%), Europe, Greater China, and Japan/Korea (each +13–14%), with North America posting 3% growth, which would have reached 13% excluding the phased-out Yeezy business.

The adidas brand showed double-digit growth in both wholesale and own retail, while e-commerce grew 18% excluding Yeezy, highlighting sustained momentum in digital.

Investment in brand and innovation

adidas increased its marketing spend by 14% to support high-profile campaigns such as You Got This and The Original, as well as new product launches and the debut of its Mercedes-AMG PETRONAS F1 partnership. Gross margin improved to 52.1%, supported by lower product and freight costs and reduced discounting.

Despite increased investments, adidas achieved better overhead efficiency, with operating expenses growing at a slower pace than revenue—contributing to significant bottom-line growth.

Tariff uncertainty clouds full-year outlook

While reaffirming its full-year forecast, adidas cautioned that geopolitical and macroeconomic risks—particularly the threat of increased U.S. tariffs on footwear and apparel—could weigh on results. Gulden noted that adidas is not able to produce most of its products in the U.S., leaving the company exposed to higher import duties that may eventually lead to price increases.

“Although we had already reduced exports from China to the U.S. to a minimum, we are still exposed to very high tariffs,” Gulden said. “We will try to navigate this uncertainty in the most pragmatic and agile way possible.”

Despite uncertainties, adidas expects to grow currency-neutral sales at a high-single-digit rate in 2025 and forecasts operating profit of €1.7 to €1.8 billion, supported by continued brand strength, a broader product range, and improved retailer relationships.

With no further Yeezy sales planned in 2025, adidas is positioning itself to gain market share through its core brand and performance, proving that strong fundamentals and global brand equity can still drive growth—even in turbulent times.